Question about repayments using 'card trick'

Knock-off_Nigel_2

Ok, I have read the stuff on stoozing and I understand how it works but I have some questions...

Are you supposed to calculate the total amount of minimum repayments and hold this back in a current account to pay off each month? Obviously paying from a savings account can reduce the high introductory rates on offer, but taking money off what you invest reduces the impact of a higher rate.

Also just looked on Barclaycard website and saw the fee is 2.9% for 1st 60 days. Phoned up and bloke told me that after 60 days there is no fee. Surely he was mistaken and the fee just falls to 2.5% after this time? Will I be able to get the card without the 60 day 2.9% period through another source?

Any help greatly appreciated!

sicker

You have to do the balance transfer within the 1st 60 days. After 60 days the 0% bt offer is not available.

NickX

With regard to your Minimum Payments question, opinions on this do vary.

Some people do pay the Minimum Payments out of their stooze pot (or as you suggest ring fence the Minimum Payments in an easy access account).

Personally I like to pay them from income. Yes this is going to dig into disposable income each month, but it is a kind of "enforced savings" because you are effectively keeping the amount of the Minimum Payments in a high interest savings account, when I do not think I would have the discipline to save this amount every month without fail.

Hope this makes sense.

Knock-off_Nigel_2

Thank you - both posts very helpful.

Yes Nick this makes perfect sense - many thanks!

Mutton_Geoff

Personally I like to pay them from income ... it is a kind of "enforced savings"

Exactly what I do. The other way to look at it is that you are earning interest on money that you haven't yet earned yourself (ie the min payments you'll be making out of your income further down the line). My Excel sheet takes this all into account and shows exactly how much enforced savings I've been making.

Susiesue

NickX wrote: »

Personally I like to pay them from income. Yes this is going to dig into disposable income each month, but it is a kind of "enforced savings" because you are effectively keeping the amount of the Minimum Payments in a high interest savings account, when I do not think I would have the discipline to save this amount every month without fail.

snap - that's how we work ours too.

Richard019

Also the way I work mine, although it's more to save the hassle of moving money from the stoozepot every month than to make me save. (It also means you don't waste ISA allowance if that's where you've put your stoozed money in the first place)